Pakistan Needs to Execute Long List of Conditions: IMF

There is a bigger list of conditions than fuel, energy subsidies and a large fiscal deficit, which Pakistan has to enforce to get the IMF tranche, says IMF Resident Representative in response to a question sent by Propakistani.

“Implementing a package of comprehensive actions, including the removal of fuel and energy subsidies and the FY2023 budget, will be important to achieve program objectives,” IMF Resident Representative, Esther Perez Ruiz, told ProPakistani.

Since the Doha talks between Pakistan and the IMF were somewhat inconclusive and technical talks between the two parties are scheduled to resume today (Tuesday), what remains crucial for Pakistan to achieve the IMF program objectives are the phasing out of fuel and energy subsidies, the budget for the coming fiscal year 2022–23, and potentially several conditions.

Speaking to ProPakistani, the resident representative of the IMF, said, “The discussions with the Pakistani authorities, aimed at reaching an agreement to enable the conclusion of the pending seventh review under the 2019 Extended Fund Facility (EFF), are ongoing and remain very constructive.”

“The IMF appreciates the authorities’ recent decision to start bringing fuel prices in line with international prices, as part of a wide-ranging set of policies and reforms to repair macroeconomic stability.” The representative added

The IMF had asked the government to set a revenue target of Rs. 7,255 billion for FY23. The inflation target for the next fiscal year, subsidies, and budget deficit still are the point to be reconsidered by the IMF.